News Column

Honeywell Posts N55.08 Billion Turnover, N3.5 Billion Profit

August 12, 2014

Helen Oji

HONEYWELL Flour Mills Plc (HFMP) has recorded a 21 per cent growth in its turnover, to N55.08 billion for its fiscal year, April 1, 2013 to March 31st, 2014, up from N46 billion in the last fiscal year.

According to the company, profit after tax (PAT) also rose by 18 per cent from N2.8 billion to N3.5 billion while earnings per share (EPS) increased from 35.86 kobo to 42.26 kobo.

The Managing Director of the company, Lanre Jaiyeola, attributed the improved performance to the company's increased output capacity and aggressive push to meet rising demand across its product categories.

He said: "despite the challenge of input cost pressures caused by increase in wheat prices, Honeywell Flour Mills was still able to achieve a 32 per cent increase in gross profit from the N8 billion recorded last year to N10.4 billion in the period under review due to deft management of raw material sourcing and efficient control of production cost.

"The sheer challenge of operating in the Nigerian business environment was evident in the rising profile of Honeywell Flour Mill's operating expenses as it incurred costs to deepen its trade, marketing and sales activities to further develop hitherto under-served sectors of the Nigerian market. Growing the top line is our number one priority even as large industry capacity remains a constant threat.

"We are committed to the development of higher margin products and from our results, you can see that investments in brand equity are beginning to yield fruits as sales of our value added products like semolina, wheat meal and noodles contributed more to our portfolio mix than in the past. This is a trend that we plan to sustain and even grow as we embark on a new phase in our corporate existence", Jaiyeola added.

The company, according the report is currently at advanced stages in the development of a new pasta plant and an Integrated Animal Feed Mill in Sagamu, Ogun State. Both projects, which are to be completed in year 2016, will create thousands of jobs and support several agriculture value chains in Nigeria, focusing on local raw material inputs.

Meanwhile, the company's fiscal year ended with a transition in the leadership of the company as the pioneer Chief Executive Officer, Folaranmi Babatunde Odunayo, retired after 17 years of meritorious service and was succeeded by Olanrewaju Bamidele Jaiyeola. Prior to his appointment as Managing Director, Lanre Jaiyeola has garnered 20 years experience in the company, working across strategic departments at both managerial and executive management levels.

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Source: AllAfrica

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